Uploaded byJulie Severance
The Path Forward: Getting started with Analytics Quotient
The document discusses strategies for achieving success with business analytics. It introduces the concept of an Analytics Quotient (AQ) which measures an organization's analytics maturity. It describes the four stages of AQ maturity - Novice, Builder, Leader, and Master. Higher AQ organizations are found to outperform others. The document recommends measuring an organization's current AQ, addressing key strategy perspectives like people, process, and technology, and implementing an Analytics Center of Excellence to organize strategies and raise the AQ to the next stage of maturity.
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The Path Forward: Getting started with Analytics Quotient
- 1. The Path Forward GettingStarted with Analytics Quotient Key Strategies for Business Analytics Success
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- 4. 4 AWARE Alert, observant, informed and perceptive FOCUSED Clearunderstanding of what’s important AGILE Highly responsive to changing priorities PREDICTIVE Able to anticipate, look forward and set expectations ALIGNED Collaboration across organization objectives Higher AQ Organizations Outperform
- 5. 5 Sales Marketing Customer Service Finance IT Operations Product Development Human Resources Manage risk, regulation& compliance Grow, retain and satisfy customers Transform financial processes Increase operational efficiency Higher AQ Empower All People, Support All Decisions
- 6. 6 STEP 1: Novice STEP 2: Builder STEP4: Master STEP 3: Leader Manual, slow, error prone, cumbersome, fragmented Data quality concerns Automated, instant, accurate, seamless, converged Data governance is in place n = 5748 Organizations IBM Study of AQ respondents Where are most on their AQ Journey? 5% 65% 9% 21%
- 7. 7 Some of theirTop Challenges impacting AQ
- 8. 8 97% 56% 6% 0% of Masters of Leaders ofBuilders of Novices …. Percent of successful High AQ Organizations that have an Analytics Center of Excellence ‘ACE’ Link to ’ACE’ Analytics Centers of Excellence
- 9. 9 It starts withtaking our brief, 15 question AQ Quiz, designed to assess and measure the maturity of your current analytics footprint. We recommend having a number of people participate in the quiz to get a broad representation. An AQ Maturity Score will be calculated for each individual taking the quiz. All individual scores need to be aggregated to learn the organization-wide AQ Maturity Score of either, Novice, Builder, Leader or Master. What are the steps to get started? Start by Measuring AQ
- 10. 10 STAGE 1: Novice •Inflexible •Spreadsheets •Extracts •Manual Intervention •StaticReports •No governance Builder STAGE 2: •Departmental •Task automation •Silo KPIs, metrics •Some standards •Some self-service •Emerging CoEs •Minimal governance STAGE 3: Leader STAGE 4: Master •Enterprise aligned •Enabling strategy through execution •Highly collaborative •360 degree insights •Analytics-driven culture •Strong analytics program and governance •C-Level Leadership (CDO/CAO appointed) Manual, slow, error prone, cumbersome, fragmented data quality concerns Automated, instant, accurate, seamless, converged Data governance is in place Timely decision-making capabilities Organization readiness and capacity to leverage analytics across critical roles and processes Mastery of information VP Lead C-Suite Driven •Cross-functional •Applied analytics •Aligned KPIs, metrics •Trusted information •Common standard •Formal governance •Full self-service •Aligned CoEs, •Formal Leadership DepartmentalIndividual What does the AQ score mean? Maps to one of four stages of maturity
- 11. 11 Business Alignment Strategy Corporateobjectives tied to functional objectives Is your analytics strategy linked to your business strategy? PEOPLE & PROCESS Organizational/Behavioural Strategy Organizational approach tying strategy to execution What analytics resources, skills and processes are needed? Technology Strategy Technology infrastructure/capabilities What analytics capabilities are needed to meet needs?TECHNOLOGY STRATEGY & VALUE How to raise AQ to the next stage? Address Key Strategy Perspectives
- 12. 12 • Analytics Vision •Enterprise Alignment Framework • Analytics Value Roadmap to AQ maturity • Organizational Models • Operational Framework • Governance • Implementation Methods • Shared best practices and Use Cases • Communication & Success Metrics • Training programs and curriculum • Technology strategy and roadmap STRATEGY & VALUE PEOPLE & PROCESS TECHNOLOGY Implement an ‘ACE’ framework Organize, align and enable strategies
- 13. 13 ACE Capabilities provided bycommon technology Alignment of analytics across the enterprise Excellence realizing & growing value with data & analytics Enabled with skills to gain insight Communities of shared expertise, organized for success Empowered with self-service Agility for a rapidly changing environment Culture of data & analytics based decision making Adoption of analytics by all types of users Vision and Principles of ‘ACE’ Organize, align and enable strategies
- 14. 14 Most Importantly Strong ExecutiveSponsorship
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- 16. 16 16 Novice • Rely on spreadsheetswith information gaps • The rear view is our only view • Manual, slow, error prone,cumbersome, fragmented, data quality concerns Builder Leader Master • View into current results and a little of what’s driving them • Results are shared with other teams within the Finance department 1% • Top-down goal SVP Finance, SVP Transformation • Insights flow freely across divisions and departments. • Allocate resources, minimize risk and maximize outcomes with equal ease and speed • Automated, instant, accurate, seamless, converged • Data governance in place 13% 85% 1%0% • VP of Brands sets the strategy • Finance brand's metrics map to other departments metrics • Look forward (predictive) as as much as you review the past 10% 60% 30% IBM Finance GOAL GOAL GOAL GOALIBM Finance IBM Finance IBM Finance How Finance Started their Journey First Measuring AQ
- 17. 17 Services Portfolio BA BusinessUse Cases BA Product Education Finance Analytics Portal Analytics as a Service Talent Development Analytics/Cognitive Academy Education Community - By Role CFO Ambassadors Finance Customer Advocate Group Organization FLAG Finance Customer Advocates/IT Finance COE Methods, Practices & Standards Chevron Model – Data to Decisions Chevron Model/Serious Game Business Analytics Use Cases Blue Insight Shared Services - Centralized Cloud (BACC BT/IT managed)= Cognos, SPSS, TM1, Watson Analytics, etc.) capabilities Finance Leading adopter - over 20,000 named users CIO Lab partnerships with new capabilities Finance Analytics Portal (FAP) on solutions Analytics Principles & Vision – Call to Action Analytics Roadmap to AQ maturity ACE Enablement Framework Finance Leadership Advocacy Group (FLAG) Analytics/Cognitive Academy Strategy & Value People & Process Technology Business Insight Operational Efficiency Manage Risk Finance COE/IT Analytics as A Service (AaaS) CFO Analytics Ambassadors Education By Roles Finance Leadership Driven Strategy Call to Action to Raise AQ Blue Insight Cloud
- 18. 18 Senior Finance VP/Directormembers from geo brands, Finance COE, Finance IT, Finance Customer Advocates. Drive culture change - educate, enable and evangelize Set the agenda & prioritize investments on AQ Framework (Strategy/Value, People/Process & Technology) Ensure optimal leverage of resources, tools and strategy in satisfying financial systems requirements. Analyze and manage portfolio, drive common systems and standards,optimize time to value, leverage reuse Business Prioritization Benefits Realization Communication Culture & Education Finance Leadership driven Strategy tied to Business Value Finance Leadership Advocacy Group Council
- 19. 19 IBM Finance Analytics Challenge Contest IBM FinanceEducation Communities - Analytics/Cognitive Academy IBM Finance Analytics Serious Game IBM Finance Data to Business Insight Chevron Model/ Skills development by role 1 2 Finance invested in People skills/talent Enabling Processes to deliver capabilities IBM One Finance – Lunch & Learn IBM Finance Analytics Portal Hub CFO Ambassadors
- 20. 20 & Consolidation New Technologies & Tools Business Analytics IT Infrastructure Global Integration Risk Management IBMONE Global Ledger IBM ONE Chart of Accounts IBM Blue Insight Shared Services - COGNOS / SPSS, WATSON ANLYTICS Research (STAR) IBM Continuous Control Monitoring (CCM) IBM Virtualization Cloud Computing IBM Finance tapped into a shared model of Technology Tools and Capabilities
- 21. 21 Use Case: WWSpend Simplify and standardize spending analysis processes by leveraging a single multi- dimensional cube on a worldwide basis 18+ Spending Cubes Consolidated 2700+ Users Solution components: - IBM® SPSS Modeler, Statistics - IBM® Cognos TM1 All previous cubes used Essbase All Spending and Resource data for all IBM units and geographies Challenge Get a holistic view of worldwide spending Solution Create single cube for all of spending to enable management
- 22. 22 Use Case: Mergers& Acquisitions 80+ Acquisitions benefited from headlights into execution risks to affect both deal pricing and integration plan Solution components: - IBM® SPSS Modeler, Statistics - IBM® Cognos BI - IBM® WebSphere End-to-End Risk Management across the acquisition portfolio Streamlined tracking and reporting to identify systemic risk and address challenges Challenge Improve outcomes from mergers & acquisitions Solution Use analytics model to create risk profile & address risks throughout the acquisition lifecycle. Systematically identifies &mitigates acquisition risk by leveraging complex, disparate data & analytics
- 23. 23 Challenge Assess financial riskacross many countries Solution Scorecard that automates information integration and financial risk monitoring of key risk indicators CFO Empowered Enabled agile decision making to seize opportunities and mitigate impact of risk CFO to be value integrators Solution Components IBM IBM IBM DB2 Business Intelligence Predictive Analytics Use Case: Country Financial Risk Scorecard Provides business insights into emerging risks with predictive analytics
- 24. 24 Heat Map withCFRS Risk Scores <=30% > < >=54% Risk Score Scale Use Case: Country Financial Risk Scorecard Benefits Key features 100% Automated Consistent across 160+ countries Standardized, automated ~100 metrics 16 internal and external sources predictive analytics from 2006, current, future PredictiveCurrentHistory Understand Risk Drivers Assess and Deploy Actions Monitor Risks / Business Outcomes Speed Efficiency Identify and Predict Increasing Risk Trends Business Insight GM Support Provides business insights into emerging risks with predictive analytics
- 25. 25 • Becoming aHigh AQ Organization is a journey not a destination. • Measure AQ to gauge your potential for analytics. Equipped with an understanding of your AQ Maturity Model Score, your organization is now empowered to understand and map out a smarter, collaborative analytics strategy and enablement plan. • Raise AQ by using all forms of data, infusing analytics everywhere, empowering all people, and all decision making. To speed up your journey, review your AQ results and implement best practice recommendation on your analytics deployment approaches. • Have Strong Executive Sponsorship. Lead vision for analytics, govern, develop talent and skills, cross collaborate data, metrics and reporting infrastructure and capabilities along with recommendation on analytics deployment approaches. • Having a higher AQ is the foundation for a cognitive business. • Get started on understanding your AQ. Take the AQ Quiz located in the AQ Workbook and start mapping out your strategies today. Key Take Away’s
- 26. 26 Analytics Strategythat aligns with business priorities across the enterprise Proven Value driving a culture of analytics-based decision making Skilled People adopting analytics to gain better business insight Shared Processes that balance agility, efficiency, scalability, and compliance Common Technology with capabilities that are easy, fast, and trusted Key Strategies for Business Analytics Success https://www.mc-store.com/products/5-keys-to-business-analytics-program-success
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- 28. 28 Thank you JULIE A.SEVERANCE Global Strategy Leader, AQ & ACE IBM Data & Analytics Strategy & Initiatives Office